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Committee chairman Clive Betts said: 'There is a fundamental problem in the way valuations for business rates are done and that needs to be looked at.

'High street shops seem to pay more than a similar unit out-of-town. That doesn't feel right when there is a public and political view that high streets need some form of protection. There's also an imbalance between property-based businesses and online sellers.'

He said a public meeting with Javid to discuss the housing White Paper would be extended to raise such concerns, given the Chancellor referred to finding 'a better way of taxing the digital part of the economy' in this month's Budget.

Betts said the committee would use an existing investigation into how business rates affect councils as a launchpad for its inquiry, and hoped to see effects soon. He said: 'I think 2020 seems a good point to aim for, not the next valuation.'

From 2020 councils will be able to retain 100 per cent of business rates in their area. But the timing of the inquiry could wrong foot Javid's Communities Department, which told The Mail on Sunday last week that the review hinted at by the Chancellor – which would be overseen by Javid – would be 'part of the next review' ahead of the 2022 revaluation and it was 'too early to say anything further'.

Betts said: 'More and more MPs are raising their voices, saying, 'I can see this happening in my high street'. This is a cross-party issue.'

He also indicated the committee was unlikely to bow to powerful retail lobby groups, saying: 'There was a move led by some retailers to say 'let's scrap business rates'. That isn't going to happen.

'Business rates are a vital part of council income. If someone pays a bit less, someone else must pay a bit more.'

The Government has promised to overhaul business rates more than once, but this is the first time they have been investigated by a parliamentary committee.